Slovenia Country Profile taxation trade issues

Slovenia

TAXES - ACCOUNTING

Corporate tax

Tax rate for resident companies	Tax is charged at a flat rate of 25%, and this is reduced to 10% for companies operating in a special economic zone.

Tax rate on long-term capital gains	Capital gains are included in the taxable income and taxed at the same rate as the corporate tax.

System governing groups of companies and dividends paid by subsidiaries to their parent companies	The paying company withholds tax at 25% on each distributed dividend to a resident of Slovenia and at 15% on each distributed dividend to a non-resident unless otherwise provided by a tax treaty.

Tax rate on branches	Foreign branches are taxed on profits made in Slovenia at a 25% tax rate.

Income tax

Fiscal year

The fiscal year begins on January 1st and ends on December 31st of the same year.

Income tax rate

Rate varies between 17 and 50% according to the amount From the income.

From 0 to 860 487 SIT	17%
From 860 488 to 1 720 973 SIT	35%
From 1 720 974 to 2 581 461 SIT	37%
From 2 581 462 to 3 441 947 SIT	40%
From 3 441 948 to 5 162 920 SIT	45%
Beyond 5 162 920 SIT	50%

Tax deductions or other allowances

In Slovenia, taxpayers can deduct 11% of their annual income.
The families which have dependent children can deduct 10% of their annual income for the first child and 5% more for every additional child.
A deduction of 3% is granted to the taxpayers which have invested in the purchase of an active immovable property.
Living allowances, hospitalization expenses, etc. are deductible.

VAT rates

Standard rates	20%. The government is considering increasing VAT to 21%.

Reduced rates	There is a reduced rate of 8.5%.

Other important taxes

Name of tax	Rate
Donations and successions	5% to 30%
Land taxes	0,1% to 1,5%

Accounting

Introduction
Since the dislocation of Yugoslavia, Slovenia has replaced the system of federal republican taxes and the accounting procedures by a new fiscal system and a new law on accounting and audit for trading companies. The Slovenian regulation is in compliance with current standards of Western Europe.

General accounting principles
The New Slovenian accounting system was finalized in accordance with international accounting standards and general accounting principles accepted in the European Union.
The accounting procedures and the structure of accounts were clearly defined in the "Slovene Accounting Standards" (SIEVES) established in 1993.

Obligations and publications
The Slovenian accounting adopts the principle of double entry. Trading companies must publish an annual report which must be disclosed within a period of 2 months after the end of the fiscal year, to the Republic of Slovenia Agency for the payment, the surveillance and the information.

Certification and auditing
The Slovenian Republic Agency for Payment, Surveillance and Information must give everyone, on simple request, the annual report data of any company.
The audit Law adopted in June, 1993 harmonizes the Slovenian audit procedures with those defined by the directive VII of the European Union and the International Union of Chartered accountants.

Professionals and representative organizations
The "Slovenski Institut za revizijo" is an Institute of audit is in charge of the establishment of accounting procedures and audit.

Useful links

For further information, please contact the Ministry of Finance of Slovenia.

Last modified in 2006 - ongoing update